US widens sanctions on Iran but withholds more punishing options

Struggling to resolve an unpopular war that has pushed energy prices higher, Washington appears to be counting on further economic pressure even though Iran has spent decades under layers of U.S. and international sanctions that have battered its economy but have not deterred its leadership.

Though neither side has launched major strikes in weeks, the war shows little sign of reaching a diplomatic solution. In the meantime the U.S. is seeking new ways to end Iranian attacks on ships in the Gulf and, more recently via its allies, in the Red Sea.

Before the announcement, Iran threatened both a possible military response and further reduction in oil exports from the Gulf in response to any U.S. economic measures. Afterward, Iranian Economy Minister Ali Madanizadeh said, "We are fully prepared for the U.S. sanctions."